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Paraguay’s state-owned electricity utility ANDE has set December 31, 2027, as the end date for the special power contracts held by cryptocurrency miners, and it has no plans to extend them under current regulations, according to Coinpedia. The same utility is meanwhile signing 15-year supply agreements with AI data center operators, changing the terms on which the country’s hydropower is sold.
Coinpedia reported that Paraguay’s mining industry is expected to generate roughly $350 million in electricity revenue for ANDE this year. Crypto Briefing, which covered the same shift, put the contracted load held by these operators at a collective 943.8 MW drawn from surplus hydropower produced at the Itaipú and Yacyretá dams.
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Key facts
- ANDE’s special crypto power contracts expire on December 31, 2027, with no extensions planned under current regulations.
- According to the utility’s signed supply agreement, Kuntur S.A. secured a 15-year electricity deal for an AI infrastructure project requiring up to 286 MW, starting at 6 MW on December 1, 2026 and reaching full capacity by April 2029.
- HIVE Digital Technologies operates about 300 MW of infrastructure in Paraguay — 200 MW at Yguazú and 100 MW at Valenzuela — and its electricity purchase agreements for both sites expire on December 31, 2027, per its 2026 annual report.
- Coinpedia reported mining revenue to ANDE of roughly $350 million this year; Crypto Briefing reported that AI and high-performance computing data centers are being offered 15-year agreements priced around $49/MWh.
- Crypto Briefing reported that the number of legal mining operators in Paraguay has fallen from 71 to 41 amid enforcement against illegal grid connections.
A longer contract for AI, an expiry date for miners
The contrast is set out in the two agreements. Kuntur’s supply ramps up gradually rather than arriving at once, but it runs for 15 years. HIVE’s contracts cover two working facilities and stop in late 2027. Coinpedia noted that continued operations past that date depend on renegotiating the existing agreements or finding replacement power on acceptable commercial terms.
Cost is part of the picture. Crypto Briefing reported that tariffs for crypto mining have risen to around $30/MWh, roughly double earlier levels, and that operators now face upfront deposit requirements on top of that. Coinpedia, citing a social media post, described a flat $44/MWh mining rate being outbid by the longer AI contracts; the two outlets give different figures for what miners pay, and neither number has been independently confirmed here.
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Exposure is concentrated. Crypto Briefing reported, citing CoinDesk, that HIVE’s Paraguayan sites house roughly 77 percent of the company’s operating mining capacity, with research findings putting the share in a range of about 77-80 percent. Those facilities have powered much of its recent hashrate growth, which now sits on contracts with a fixed end date.
Why it matters
Paraguay built a reputation as one of the cheapest places to mine Bitcoin because of surplus hydropower from its two large dams. If the utility holds to its schedule, the country’s mining load will need new arrangements within about 13 months of today, while AI operators hold multi-year deals. The government’s stated preference, as Crypto Briefing described it, is for projects that create more jobs and commit for longer horizons, and ANDE is expected to keep collecting hundreds of millions of dollars a year from intensive users regardless of who holds the contracts.
What to watch
The decisive date is December 31, 2027, so watch for any HIVE disclosures on contingency plans and for regulatory changes that could reopen extension talks, as Crypto Briefing flagged. Kuntur’s first 6 MW arrives on December 1, 2026, and further long-term AI contracts from ANDE would show how firmly the utility has committed to the new model.
Sources: Coinpedia, Crypto Briefing
